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Regulations – Overview

When we refer to the regulations, we generally mean the federal rules that govern award recipients' behavior under the terms of the award agreement.

"The regulations" typically show up in the award agreement by reference. There will be a clause in the agreement that invokes a regulation by name and includes the entirety of the regulation as a term of the agreement. A good example is USAID's standard provision M1. Applicability of 2 CFR 200 and 2 CFR 700 (DEC 2014), which says (in part) "All provisions of 2 CFR 200, 2 CFR 700, and all Standard Provisions attached to this agreement are applicable to the recipient…". Another example is USAID's inclusion of 22 CFR 228 by reference in its standard provision M8. USAID Eligibility Rules for Goods and Services (JUN 2012).

But sometimes the funding agency will enforce an applicable law without invoking a regulation, as USAID does (enforcing the Fly America Act) in its standard provision M17. Travel and International Air Transportation (DEC 2014). And sometimes, the law that is enforced is not a statute but is an executive order (another form of US law that is not enacted by Congress but is rather ordered by the President), as in USAID's standard provision M12. Preventing Terrorist Financing — Implementation of E.O. 13224 (AUG 2013). (I discuss the USAID SPs in greater detail in About USAID Standard Provisions and on additional pages referenced there.)

And (as if regulations, statutes and EOs weren't enough), federal agencies will also impose agency policy, as USAID does in its standard provision RAA4. Exchange Visitors and Participant Training (JUN 2012). Other areas where USAID imposes its internal policies on assistance recipients include special reporting requirements, construction restrictions, environmental impact studies/plans, etc. (Note that USAID's branding/marking policy is codified as regulation at 2 CFR 700, which is the regulation by which USAID adopts and codifies the OMB guidance at 2 CFR 200. See also About 2 CFR 200.)